In short: The amount of Ether stored on centralized crypto exchanges is at its lowest level in five years, according to data from Glassnode. The current 17.8 million ETH represents less than 15% of the total token supply, which is considered a bullish trend as it limits the amount of crypto available for purchase. The decrease in exchange balances coincides with a rise in staking, with figures for staked ETH increasing since the Shapella upgrade in April. This is triggered by institutional staking service providers and investors reinvesting rewards after withdrawal.
Our quick analysis:
It seems like Ethereum, the second-most valuable cryptocurrency, is on a mission to free itself from the shackles of centralized exchanges. In the latest development, the balance of Ether stored on centralized crypto exchanges has hit a five-year low, according to the latest data from Glassnode.
Who would have thought that less than 15% of Ethereum's total token supply would have been residing on exchanges? If you're not a math whiz, let us put it into perspective. During the 2021 bull market, the exchange balance was around 26%, which is quite a considerable difference.
Don't take this as bad news, though. This trend is actually bullish - it means that there is a limited supply of Ether available for purchase, which can drive up its price. So, for all the hodlers out there, this could be a good time to contemplate their next move.
The decreasing Ether balances on exchanges have been a matter of concern since September 2022, and this is where it gets interesting. The decline has been more pronounced since FTX's bankruptcy, which dented investor confidence in centralized custodians. Well, who needs those anyway, right?
But what has caused this decline in Ether supply? A rise in staking. Yes, staking! After the Shaipella upgrade, the figures for staked Ether have surpassed 21.3 million, up from 19.3 million before the update. Validators can now withdrawal their staked Ether from the Beacon Chain after three years. Seeing this opportunity, more and more validators are re-staking their Ether, leading to a decline in the token's supply.
CryptoPotato had earlier reported that the Ether staking volume exceeded the amount of the crypto-asset being withdrawn within a week after the Shaipella upgrade. Meanwhile, institutional staking service providers and investors reinvesting rewards after withdrawal are behind the influx.
It's good to see Ether making a run for it. Centralized exchanges won't know what hit them. All we can say is that the future of Ethereum looks promising. So, keep hodling, folks!
Image provided by Unsplash
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
Our quick analysis:
It seems like Ethereum, the second-most valuable cryptocurrency, is on a mission to free itself from the shackles of centralized exchanges. In the latest development, the balance of Ether stored on centralized crypto exchanges has hit a five-year low, according to the latest data from Glassnode.
Who would have thought that less than 15% of Ethereum's total token supply would have been residing on exchanges? If you're not a math whiz, let us put it into perspective. During the 2021 bull market, the exchange balance was around 26%, which is quite a considerable difference.
Don't take this as bad news, though. This trend is actually bullish - it means that there is a limited supply of Ether available for purchase, which can drive up its price. So, for all the hodlers out there, this could be a good time to contemplate their next move.
The decreasing Ether balances on exchanges have been a matter of concern since September 2022, and this is where it gets interesting. The decline has been more pronounced since FTX's bankruptcy, which dented investor confidence in centralized custodians. Well, who needs those anyway, right?
But what has caused this decline in Ether supply? A rise in staking. Yes, staking! After the Shaipella upgrade, the figures for staked Ether have surpassed 21.3 million, up from 19.3 million before the update. Validators can now withdrawal their staked Ether from the Beacon Chain after three years. Seeing this opportunity, more and more validators are re-staking their Ether, leading to a decline in the token's supply.
CryptoPotato had earlier reported that the Ether staking volume exceeded the amount of the crypto-asset being withdrawn within a week after the Shaipella upgrade. Meanwhile, institutional staking service providers and investors reinvesting rewards after withdrawal are behind the influx.
It's good to see Ether making a run for it. Centralized exchanges won't know what hit them. All we can say is that the future of Ethereum looks promising. So, keep hodling, folks!
Image provided by Unsplash
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
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